Who Pays What?

A Guide to Closing Costs

The down payment is not the only money that exchanges at the closing table. Depending on the type of loan you decide to go with you may decide to put 3.5%, 5%, 10% or more. On top of that you will have closing costs that come from the financing aspect and the title research. As an example, for a $150,000 contract with an FHA loan you will need to bring approximately $10,000 to close. What do closing costs comprise?

The Buyer Can Generally Be Expected to Pay For:
Loan policy and endorsements
Record warranty deed
Record deed of trust
Courier fee
Escrow fee
Tax ServiceFee (lender charge)
Full – year homeowner’s insurance policy (lender charge)
2-3 months hazard insurance escrow (lender charge)
Tax Reserve (lender charge)
Loan application and/or discount fee (lender charge)
Appraisal (lender charge)
Credit report (lender charge)
Lender document preparation (lender charge)
Flood certification (lender charge)
Mortgage insurance premium – MIP or PMI (lender charge)
Miscellaneous loan fees (lender charge)
Prepay’s for Property Tax and Homeowner’s association dues and fees
Guaranty Fee
Any other costs as outlined in real estate contract
Inspection fees

What the Seller Can Generally be Expected to Pay for
Loan payoff (per existing lender’s payoff letter)
Owner’s Title Policy premium
Record release of existing lien(s)
Current year real estate tax pro-ration (per contract)
Prior year’s property taxes still due (if due)
Homeowner’s association dues and fees (if applicable)
Escrow fee
Commissions (per listing agreement)
Tax certificate
Attorney Documents Prep Fee and Deed and Release
Homeowner’s Transfer Fee (if applicable)
Guaranty Fee
Any other costs as outlined in real estate contract

Negotiated Under Contract
Inspection Period/New Survey
Repairs from Inspections
Home Warranty
Seller’s Contributions

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